Article appeared Friday, May 7th, 2010 in The News Today, Bangladesh

The Revelation (129) yousuf mahbubul Islam, PhD

Chen & Ravallion (2008) {1} report that extreme poverty is more pervasive than previously
thought and estimate that in 2005 there were 1.8 billion people or one-quarter of the population
of the developing world who lived below US$1.25 a day at 2005 prices. US$1.25 is just a bench
mark; however, it does bring home the enormity of the problem – it is a fact that there is a huge
gap between the rich and the poor. And the gap is getting wider! Why and how? We may find
clues in Brown’s (2010) {2} book, “The Web of Debt”. Quoting from the website:
“Our money system is not what we have been led to believe. The creation of money has
been "privatized," or taken over by private money lenders. Except for coins, all of our
money is now created as loans advanced by private banking institutions — including the
privately-owned Federal Reserve. Banks create the principal but not the interest to
service their loans. To find the interest, new loans must continually be taken out,
expanding the money supply, inflating prices — and robbing you of the value of
your money.” {2}

If one cares to do research, one will find that interest or usury lies at the root of all our money
problems {3}. Quoting from the website:
“What this deliberately suppressed and hence little known historical experience
demonstrates is that usury rather than a proper system of "money" supply for use and
convenience in commercial and social life; is the core cause of poverty and misery in
today's world. In other words: "Usury is the root of all evil"!” {3}

To find out what the world religions say about usury or interest, Wikipedia hosts an interesting
article at http://en.wikipedia.org/wiki/Usury. In the Old Testament (King James Version), the
following verse {4} is given:
“Take thou no usury of him, or increase: but fear thy God; that thy brother may live with
thee.” [Leviticus 25:36]

The same verses appear in the Torah {4} as:

“And if thy brother be waxen poor, and his means fail with thee; then thou shall uphold
him: as a stranger and a settler shall he live with thee. Take thou no interest of him or
increase; but fear thy God; that thy brother may live with thee. Thou shall not give him
thy money upon interest, nor give him thy victuals for increase.” [Leviticus, 25:35-37]

Is it a surprise that Allah says in the Qur’an:

“That they took usury (interest) though they were forbidden; and that they devoured
men's substance wrongfully; We have prepared for those among them who reject faith a
grievous punishment.” [4.161]

Any money or banking system based on usury or interest will ultimately “devour men’s
substance wrongfully!” One may feel that the interest one enjoys is small; however, whether one
gives or takes interest, it all goes towards supporting both the concept and a money system
based on increase through usury or interest. The question to answer is, ‘where does usury or
interest come from?’
“O, you who believe! Fear Allah and give up what remains of your demand for usury if
you are indeed believers.” [2.278]
Prophet Muhammad (pbuh) is reported to have included usury, interest or Riba (Arabic) among
the seven destructive sins:
 “Narrated Abu Huraira: The Prophet said, "Avoid the seven great destructive sins." They
(the people) asked, "O Allah's Apostle! What are they?" He said, "To join partners in
worship with Allah; to practice sorcery; to kill the life which Allah has forbidden except for
a just cause (according to Islamic law); to eat up usury (Riba), to eat up the property of
an orphan; to give one's back to the enemy and fleeing from the battlefield at the time of
fighting and to accuse chaste women who never even think of anything (except)
touching chastity and are good believers."” [Sahih Al-Bukhari: 8.840]

So what can one do?

“…but Allah has permitted trade and forbidden usury…” [2.275]

Trade is barter or exchange of equal value. When it comes to dealing with money systems, one
simply has to work out a wage for legitimate services. As pointed out by Qutb (1999),
“There are countless legitimate ways and means for investment, growth and
development of capital, employing one’s own entrepreneurial skills or by working in
partnership with others, in which all parties share in the loss or profit of the enterprise.
These would include many profitable and equitable forms of business such as trading in
shares of companies whose profits are fairly distributed among the shareholders,
cooperative banks that invest in commercial and industrial projects and share profits and
losses among depositors, rather than give a fixed rate of return on deposits – such
banks would be entitled to charge appropriate service or management fees.” {5}

However, if one does not give up the remaining demands of usury or interest [2.278], then,

2.279 “If you do it not, take notice of war from Allah and his Apostle: but if you
turn back you shall have your capital sums; deal not unjustly and you shall not be
dealt with unjustly.”
Qutb (1999) {5} points out that this is warning of a total condemnation of all societies adopting
usury/interest as a basis for social and economic life. What effect do runaway inflation, high
taxation, crippling international debts, recession and poverty have on daily life? Where do these
come from?

2.280 “If the debtor is in a difficulty grant him time till it is easy for him to repay.
But if you remit if by way of charity that is best for you if you only knew.”

2.281 “And fear the Day when you shall be brought back to Allah. Then shall
every soul be paid what it earned and none shall be dealt with unjustly.”
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{Notes}:
{1} Chen, S. & Ravallion, M. (2008). "The Developing World Is Poorer Than We Thought, But
No Less Successful in the Fight against Poverty". Development Research Group, World Bank.
{2} Brown, E. H. (2010). The Web of Debt: The Shocking Truth About our Money System and
How We Can Break Free. http://www.webofdebt.com/
{3} Chapman, R. & Brown, E. H. (2010). Usury is the Root of All Evil: Free Money is Essential to
Prosperity and Abundance. http://abundanthope.net/pages/Ron_71/Usury-Free-Money-is-
essential-to-Prosperity-and-Abundance.shtml
{4} Usury. http://en.wikipedia.org/wiki/Usury
{5} Qutb, S. (1999). In the Shade of Qur’an. Volume 1. Translated by Salahi & Shamis. The
Islamic Foundation. pp.466-467.